Entrenched premium leaves gold primed to climb despite surge in US bond yields - Reuters
Entrenched premium leaves gold primed to climb despite surge in US bond yields - Reuters
Source: Reuters
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DW NOTE
The Fed is hiking into a supply shock it cannot solve, and gold is down 21% from its January peak—which tells you the market still thinks central banks control outcomes. They don't. The Strait of Hormuz has been shut for a month, oil inventories are falling 3 million barrels per day, and the 10-year yield is at 5.26% because Treasury issuance isn't slowing. Gold's "entrenched premium" is what's left after the delusion that rate hikes fix geopolitical choke points gets priced out.